Reading time: 3 minutes

A $5.5 billion package for small businesses, a “fairer” system of tax that squeezes tax-avoiding multinationals and a growing deficit are the highlights of this year’s Federal Budget.

Asset Write-Off

Federal Treasurer, Joe Hockey, has encouraged all small businesses to “get out there and have a go”. The mammoth $5.5B package will benefit more than 2 million small businesses. Part of the package is to allow small businesses to make immediate deductions on assets valued under $20,000 – a twenty-fold increase from the previous threshold.

Small businesses have until 30 June 2017 to take advantage of this ambitious asset write-off, which is forecast to cost $1.8B.

“Cars and vans, kitchens and machinery — anything under $20,000 is immediately 100 per cent tax deductible from tonight,” Mr Hockey proudly announced in his budget delivery.

This uncapped stimulus has been criticized as unstable and susceptible to a budget blowout, but the Treasurer argues that the more the measure is utilised, the more the economy should benefit.

Encouraging Start-Ups and Entrepreneurship

To further boost entrepreneurial endeavour, start‑ups will be allowed to immediately deduct professional expenses incurred when they start a business, such as legal expenses on establishing a company, trust or partnership; rather than writing them off over five years. This will provide immediate cash flow benefits for small business.

The Federal Government will also remove obstacles to crowd sourced equity funding. In turn, this will help promote small businesses access to finance by increasing the availability of innovative sources of funding.

Tax Cuts for Businesses

In addition, after 1 July 2015, small businesses with annual revenue of less than $2M will receive a 1.5% tax cut bringing the overall tax rate to its lowest point since 1967 at 28.5%.

This tax cut will also apply to unincorporated businesses like contractors and sole traders that pay income tax instead of company tax. As with the incorporated business tax cut, this measure will only apply to businesses that earn less than $2M in annual revenue. There will also be a 5% discount on any tax paid on income from the business, with an annual cap of $1000.

Abolishment of Fringe Benefits Tax

Hockey also announced that part of the package aimed at stimulating small business and the economy would include doing away with the fringe benefits tax on work-related, portable electronic devices, and lowering the tax burden on employee share schemes.


If you run a startup and are considering starting a business, you can now deduct any professional fees, including legal and accounting, when setting up a company, trust or partnership.

If you would like advice on moving from a sole trader to a company or trust, or would like assistance with the legal documents to start or grow your business, please contact LegalVision on 1300 544 755 and take advantage of our special Start-up package.




Redundancies and Restructuring: Understanding Your Employer Obligations

Thursday 7 July | 11:00 - 11:45am

If you plan on making a role redundant, it is crucial that you understand your employer obligations. Our free webinar will explain.
Register Now

How to Sponsor Foreign Workers For Your Tech Business

Wednesday 13 July | 11:00 - 11:45am

Need web3 talent for your tech business? Consider sponsoring workers from overseas. Join our free webinar to learn more.
Register Now

Advertising 101: Social Media, Influencers and the Law

Thursday 21 July | 11:00 - 11:45am

Learn how to promote your business on social media without breaking the law. Register for our free webinar today.
Register Now

Structuring for Certainty in Uncertain Times

Tuesday 26 July | 12:00 - 12:45pm

Learn how to structure to weather storm and ensure you can take advantage of the “green shoots” opportunities arising on the other side of a recession.
Register Now

Playing for the Prize: How to Run Trade Promotions

Thursday 28 July | 11:00 - 11:45am

Running a promotion with a prize? Your business has specific trade promotion obligations. Join our free webinar to learn more.
Register Now

Web3 Essentials: Understanding SAFT Agreements

Tuesday 2 August | 11:00 - 11:45am

Learn how SAFT Agreements can help your Web3 business when raising capital. Register today for our free webinar.
Register Now

Understanding Your Annual Franchise Update Obligations

Wednesday 3 August | 11:00 - 11:45am

Franchisors must meet annual reporting obligations each October. Understand your legal requirements by registering for our free webinar today.
Register Now

Legal Essentials for Product Manufacturers

Thursday 11 August | 11:00 - 11:45am

As a product manufacturer, do you know your legal obligations if there is a product recall? Join our free webinar to learn more.
Register Now

About LegalVision: LegalVision is a commercial law firm that provides businesses with affordable and ongoing legal assistance through our industry-first membership.

By becoming a member, you'll have an experienced legal team ready to answer your questions, draft and review your contracts, and resolve your disputes. All the legal assistance your business needs, for a low monthly fee.

Learn more about our membership

Need Legal Help? Submit an Enquiry

If you would like to get in touch with our team and learn more about how our membership can help your business, fill out the form below.

Our Awards

  • 2020 Innovation Award 2020 Excellence in Technology & Innovation Finalist – Australasian Law Awards
  • 2020 Employer of Choice Award 2020 Employer of Choice Winner – Australasian Lawyer
  • 2020 Financial Times Award 2021 Fastest Growing Law Firm - Financial Times APAC 500
  • 2020 AFR Fast 100 List - Australian Financial Review
  • 2021 Law Firm of the Year Award 2021 Law Firm of the Year - Australasian Law Awards
  • 2022 Law Firm of the Year Winner 2022 Law Firm of the Year - Australasian Law Awards